Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (May 29): The FBM KLCI is expected to trend sideways today with sparse gains in line with the weaker overnight close at most global markets as the spectre of a Greece default kept investors on tenterhooks.

The euro rose on Thursday as Greece fought to reach an agreement with its lenders to avoid an imminent default, but mixed signals on the state of the negotiations kept other markets little changed, according to Reuters.

Crude oil futures rose in choppy trade after two days of sharp losses after data showed a fourth weekly drawdown in U.S. crude stockpiles, it said.

At the closing bell in New York, the Dow Jones industrial average was down 36.87 points, or 0.2 percent, to 18,126.12, the S&P 500 had lost 2.69 points, or 0.13 percent, to 2,120.79 and the Nasdaq Composite had dropped 8.62 points, or 0.17 percent, to 5,097.98, said Reuters.

AllianceDBS Research in its evening edition Thursday said that the FBM KLCI had on May 28 traded marginally higher to 1,759.43 as some market participants took the chance to play on the buying side.

However, it said weak follow through buying in the area of 1,759.43 prompted renewed selling interest, adding that this pushed the benchmark index down to 1,750.72 before rebounding to settle at 1,755.56 (+ 0.51, + 0.03%).

“In the broader market, losers outnumbered gainers with 420 stocks ending lower and 324 stocks finishing higher. That gave a market breadth of 0.77 indicating the bears were in control,” it said.

AllianceDBS Research said the benchmark index registered its first higher high and higher low on May 28 after a series of lower high for 7 consecutive days.

The research house said the market made an attempt to turn the benchmark index around after the positive opening note, but many market participants were still seen unwilling to join in the buying game for fear of further weakness.

“Nonetheless, the higher low and higher high on May 28 were viewed “encouraging” given the prevailing weak trading sentiment.

“An inability of the benchmark index to hold at 1,750 would put pressure on the benchmark index down to the subsequent support zone, 1,740 – 1,745,” it said.

The research house said the overhead resistance was at 1,776.

It said that indicator wise, the MACD was below the 9-day moving average line.

“The analysis of overall market action on May 28 revealed that buying power was weaker than selling pressure.

“As such, the FBM KLCI would likely trade below the 1,750.72 level on May 29,”said AllianceDBS Research.

      Print
      Text Size
      Share